Italy’s plan to introduce a tax on financial transactions is an error which would hit the employment level in the country, Xavier Rolet, chief executive of the London Stock Exchange which controls Italy’s Borsa Italiana, has warned today.

Speaking at a conference in Milan, Rolet said a financial transaction tax will also shift trading activity from Italy to London.

“It would cause the loss of thousands of jobs, just like in Sweden in 1994,” he added.

According to the law which has intoduced the levy, the tax rate will be 0.05% on share and derivative transactions.